Month: November 2015

Financial Experts believe that it is never too late to start investing. But at the same time, they also emphasis that the sooner you start, better it is for your future. Keeping this in mind, many parents’ start saving for their children right from the day they are born. And what’s safer than keeping money in a Bank account in the name of your child. Having a savings bank account for your child not only helps you to build a corpus for child’s future needs like education, but it also helps to inculcate the habit of savings in children from an early age.

Having kids savings account is like having a bigger piggy bank, where the money will be safe and can earn interest on the same.

Following are some of the popular savings accounts for kids offered by Banks in India.

1.ICICI Bank Young Star Account

Young Star Account is Kids saving account of ICICI bank. In order to open this account you must be existing account holder of ICICI bank.

ICICI Bank Young Star Account Features
Young Stars Account

ICICI Bank Young Stars Account is a banking service for children in the age group of 1day – 18years. The guardian can open and operate the account on behalf of the minor.

Kotak My Junior Account is one of the best kids saving account. This account offers multiple benefits.

Kotak My Junior Account Features

• Earn 6% interest p.a. on savings account balance over Rs. 1 Lakh and 5.0% interest p.a. on balances up to Rs, 1 Lakh on Resident Accounts only.
Debit Cards will be issued to children above the age of 10 years and it will have a daily withdrawal limit of Rs. 5,000/- only.
• Rewards for saving money regularly in this account. These rewards includes book voucher, movie ticket and discount vouchers.
• Exclusive Kotak Junior ID card
• Exclusive privileges and discounts at multiple places.

• HDFC Kids Advantage Account is for minor up to 18 years of age.
• This account offers free education insurance cover of 1 Lac.
• You can give standing instruction to transfer any amount from your account to your Kid’s Advantage account every month.
• Automatic sweep facility in case amount reaches/exceeds to Rs.35000
• Free cash withdrawals on any other Bank’s ATM
• ATM/International Debit Card will be issued for children between 7-18 years of age in your child’s name with your permission. Your child can withdraw Rs. 2,500 at ATMs and spend Rs. 10,000 at merchant locations per day.
• Free NetBanking for you to monitor your child’s account.
• Standing Instruction to transfer any amount from your account to your Kid’s Advantage account every month (Minimum value Rs. 1,000 & Minimum tenure 1 year) (Mandatory).

4.Axis Future Stars Saving Account

Axis bank kids saving account is known as Future Stars saving account. This account is useful if you want to introduce your child to the basic principles of money management.

Future Stars Saving Account Features

• Low minimum opening deposit of 2500 Rs.
• First 5 free transactions at Axis Bank ATMs
• Free SMS Alerts, Monthly e-statements/Passbook and Internet Banking Facility
• Free ATM card for children below 10 years with a daily withdrawal limit of Rs.1,500
• Visa Classic Debit Card at a nominal fee of Rs.150 for issuance and Rs.150 annually thereafter in metro and urban locations
• One free payable-at-par Cheque book per quarter in the child’s name
• No Average Monthly Balance requirement if a Fixed Deposit (for 6 months) of Rs.25,000 or a Recurring Deposit of Rs.2,000 (for a year) is maintained.
• For children above 10, an image of their can choice can be printed on the debit card
• Avail of personal accident insurance cover of upto Rs.2 lakhs by swiping your card once every 6 months
• Combined Lost Card Liability and Purchase protection liability of up to Rs. 50,000 to protect against fraudulent use of the debit card or damage/loss of articles purchased using debit card.

5. SBI PehlaKadam PehliUdaan

PehlaKadam and PehliUdaan are two different kids saving account offered by SBI bank. Both these saving bank accounts offer multiple features like internet banking, mobile banking etc.

• Interest at 4.00% p.a. calculated on a daily balance
• Transferability of accounts to any SBI Branch without changing the account number.
• Nomination facility is available and recommended.
• Specially designed branded Passbook issued free of charge.

• PehlaKadam is account for minor of any age.
• This account will be jointly opened with the parent/guardian.
• No Minimum balance requirement.
• Special ATM card with embossed child photo will be issued.
• Auto sweep facility available.
PehliUdaan Account Features

• PehliUdaan is account for minor above 10 years age.
• PehliUddan account can be opened on the sole name of minor.
• Mode of operation of this account will single by minor.
• All other features of this account is similar to PehlaKadam.

6. Power Kids by IDBI Bank:

The power kids’ savings account by IDBI Bank is actually powerful as it requires an average quarterly balance (AQB) of only Rs.1500 and does not charges any penalty on non-maintenance of desired AQB.

It has a set daily withdrawal limit of Rs.2,000 on its ATM-cum-Debit card. Moreover, the children having their savings account can easily strengthen their relationship further with IDBI Bank by availing education loan for their higher studies on discounted rates.

Coming as a surprise to no one, the United States is the third largest producer of gold and the single largest holder of gold reserves in the world. The only larger gold reserve in a single organization is the G6, of which many nations reside in the top ten individually. The United States gold reserve percentage is 72.7 percent, with the physical stockpile reaching 8,133.5 tonnes. This number has fallen in the last half-century from the all-time high of over 20,000 tonnes.

2. Germany

As the second largest holder of gold reserves in the world, Germany has been selling gold in small amounts over the last several years. However, the country recently announced its intentions to purchase gold from physical reserves in both Paris and New York. The current German gold total is 3,381 tonnes,making up 67.1 percent of the country’s forex reserves.

3. Italy

Italy has seen its share of economic problems in the last decade, and its high gold reserve percentage is a symptom of the larger problem. Italy’s forex reserve ratio sits at 65 percent, with the country holding slightly more gold than France. Italy holds 2,451.8 tonnes of gold in reserve.
4. France

France is the first country on this list to break 2,000 tonnes of gold in reserve. The country currently holds 2,451.8 tonnes. The country has recently sold over 500 tonnes, but has no plans to continue these sales in the coming years. France has a high reserve percentage in gold investment, reaching 62.1 percent.

5. China

China is the world’s number one producer of gold, and yet very little of that gold is held in reserve for the country. Instead, most of it is sold and the profit reinvested in the Chinese markets. In the coming years, however, China looks to be expanding its need for gold, to increase its forex percentage above the current 1.6 percent. China currently holds 1,708.5 tonnes of gold in reserve.
6. Russia

Russia is the fourth largest producer of gold in the world, and has been building up its own reserves since 2006 in order to diversify. After a domestic purchase in 2012 of around 75 tonnes, the Russian gold reserve total reaches just shy of 1352.2 tonnes. This investment brings the forex reserve percentage up to 13.1 percent.

7. Switzerland

Prior to 1997, Switzerland was steadily building its gold reserves. In 1997, the decision was made to sell some of those reserves to bolster the Swiss currency and diversify the forex reserves. The forex reserve percentage in Switzerland is currently 13.1 percent, with the country being the lowest on this list to hold over 1,000 tonnes; the total currently announced as 1,040.1 tonnes.
8. Japan

The small but powerful nation of Japan had been steadily increasing its reserves of gold since the 1960s. That reserve grew until the year 2011, when the country began to sell some of its reserves in order to calm the investors and stimulate the economy in the wake of the tsunami and the following Fukushima nuclear disaster. Japan’s reserves hover around 2.2 percent, with the official total reaching 765.2 tonnes.
9. Netherlands

Over the last decade and a half, Netherlands has been selling off some tonnes of gold to reduce its reserve. Less gold sold than the country wanted, and in recent years, this desire to sell has been reduced. Netherlands holds 55.8 percent of its forex reserve in gold, which currently totals 612.5 tonnes.

10. India

India rarely invests much in gold, as the country operates under a belief that buying gold leads to a deficit. The country currently holds 557.7 tonnes of gold, making up 5.6 percent of the country’s total forex reserve.

Gold crashed to fresh three-month lows on Friday amid a surging dollar, as a robust U.S. jobs report augmented hawkish arguments for a December interest rate hike by the Federal Reserve.

A rate hike is considered bearish for gold, which struggles to compete with high-yield bearing assets.
MCX GOLD closing Price on Friday is Rs. 25523/-

However, markets have been pricing it according to the higher probability of a rate increase in December 2015, and thus the dollar has correspondingly gained. Higher interest rates should cause money to flow in the US, thus giving a push to the greenback. But a rising US dollar would likely cause dollar-denominated assets like gold and silver to fall as they are now more expensive for the foreign buyers.

On the Comex division of the New York Mercantile Exchange, gold for December delivery traded in a broad range between $ 1,084.60 and $ 1,109.70 an ounce before settling at $ 1,088.00, down 16.20 or 1.47% on the session. Gold has fallen nearly 8% since the start of trading on Oct. 28, the first of its current eight-session losing streak. At one point on Friday, gold fell to its lowest level since Aug. 7. The precious metal is nearing its six-and a half year low from July when it plunged below $ 1,080 an ounce during a 10-day skid.

On Friday , the U.S. Department of Labor said in its October national employment report that nonfarm payrolls surged by 271,000 last month, significantly above expectations for a consensus gain of 190,000. The sharp gains marked the largest increase in U.S. nonfarm jobs since last December. Private payrolls also soared by 268,000 in October, above forecasts of a 174,000 increase.

The U.S. Dollar Index, which measures the strength of the greenback versus a basket of six other major currencies, shot up more than 1.25% to an intraday high of 99.47. The index soared to its highest level since mid-April.

The Fed’s first rate hike in nearly a decade is viewed as bullish for the dollar, as investors abroad pile into the greenback in an effort to capitalize on higher yields. Dollar-denominated commodities such as gold become more expensive for foreign purchasers when the dollar appreciates.

Mutual Fund houses will have to mandatorily provide additional KYC informations pertaining to gross annual income and net worth of new investors by November 1, as also their ‘beneficial ownership’ details.

Fund houses have also been asked to reject new applications for non-submission of these details, while existing investors would need to update the information by December 31, 2015.

The new requirements follow the Best Guidelines Circular issued by the industry body AMFI to bring uniformity in KYC requirement and ensure compliance to the provision of information on ultimate beneficial ownership and implementation of the new global tax avoidance law FATCA.

Under the FATCA (Foreign Account Tax Compliance Act) of the US, India and other signatory countries have agreed that all their financial institutions will follow enhanced KYC (Know Your Client) procedures to identify accounts of the US and other foreign taxpayers on an annual basis.

With effect from November 1, 2015, mutual fund houses have been asked “to mandatorily provide ‘Beneficial Ownership’ details of all new MF investors,” BSE said in a circular.

Also, they have been asked to “mandatorily provide additional KYC details such as gross annual income, net worth etc, of all new MF investors,” it added.

In order to continue making additional subscriptions (including switches) in their existing accounts, bona-fide investors will have to submit the details by December 31.

Further, funds have been asked to make focused and sustained efforts to obtain the missing KYC information from existing investors or complete the ‘in person verification’ requirements by December 31 to ensure that KYC obligations are met but without causing inconvenience to bona-fide investors.
In case investors fail to adhere to the norms, fund houses will reject all purchase and switch transactions.

It is based on OTP authentication. OTP will be sent to both email n mobile so that NRIs can also update details. Updation is based on PAN so it is very convenient to the investors. Participating AMC- AMC in which KCPL is Registrar.

Japan’s government raised 1.44 trillion yen ($12 billion) from the IPO, the largest since Alibaba Group Holding Ltd. in September 2014 and Japan’s biggest state asset sale since 1987. The privatization is part of a wave that includes Britain’s Royal Mail Plc in 2013, Italy’s Poste Italiane SpA last month and potentially China’s postal savings bank next year.

Biggest listing in Japan since 1987.

IPO a key step in Abe’s growth strategy.

First-time share investors get first-day boost.

Shares priced cheaply to ensure happy debut.

Japan Post IPO to Shift Focus to Property Portfolio With offering looming, postal service develops more of its vast land holdings.

Japan Post Bank May Shift Some of Its Investments to Stocks.

Also, like other postal services, Japan Post has a major asset to back it up as it adapts to the enormous technological changes in the ways that people communicate and move goods: a vast real-estate portfolio.

Japan Post Bank is also considering allocating money to alternative investments such as private equity and U.S. real estate investment trusts.

The holding company was priced at 1,400 yen in the IPO, the equivalent of 0.41 times the book value of its assets. Japan Post Bank Co., the nation’s biggest holder of deposits, was priced at 1,450 yen, or 0.47 times book value, less than the average of about 0.7 times at Japan’s three biggest lenders. Japan Post Insurance Co., the nation’s largest insurer by assets, was priced at 2,200 yen, or 0.67 times book value.

Japan Post Bank has a market value of 7.5 trillion yen based on early trading Wednesday, making it the nation’s second-biggest bank, ahead of Sumitomo Mitsui Financial Group Inc.

For Prime Minister Shinzo Abe, facing questions over the effectiveness of his Abenomics economic revival plans, the IPO could be an uncomfortable bellwether if it does not create a new generation of shareholders. Some 75 per cent of the stock has been earmarked for individual Japanese investors, who now have a chance to buy a chunk of the most dependable brand in Japan, with a yield, at just over 3 per cent, far better than leaving the money in the Japan Post Bank.

About 10 percent of each Japan Post company’s shares were sold to the public, raising about 1.4 trillion yen, in the largest privatisation of a Japanese state-owned firm since that of Nippon Telegraph and Telephone Corp in 1987.

Nationwide network

One of the company’s greatest advantages is its nationwide network of 240,000 Full-time staff work for Japan Post, another 150,000 part-time.

In February, Japan Post announced its first overseas acquisition with the $5.0 billion takeover of Australia transport logistics giant Toll Holdings.

Reserve Bank of India (RBI) has fixed the public issue price at Rs 2,684 per gram for the sovereign gold bonds, for which applications will be accepted from November 5 to 20.

The gold bond scheme will offer investors an interest rate of 2.75 per cent and a choice to buy bonds worth 2 grams of gold, up to a maximum of 500 grams. “The issue price of the sovereign gold bond for this tranche has been fixed at Rs 2,684 per gram of gold.

“The rate has been fixed on the basis of simple average of closing price for gold of 999 purity of the previous week (October 26-30, 2015) published by the India Bullion and Jewellers Association Ltd (IBJA).

“The tenor of the bond will be for a period of eight years with exit option from 5th year to be exercised on the interest payment dates.
The interest earned on gold bonds would be taxable, and capital gains tax shall be levied as in case of physical gold. The bonds can be bought by resident Indian entities including individuals, HUFs, trusts, universities and charitable institutions.

“Affordable housing” was one such commitment made by the BJP led Maharashtra Government during their election Campaign & it seems that they are very seriously working on its completion.

We are well aware of the tax head” Income from housing property” in the income tax form. But first time Maharashtra Government has decided to introduce a tax on “Vacant Land & apartment (i.e.flat)”

In India most of the developers, politicians and investors are using their black money for buying land or flats in bulk. “It leads to crony capitalism. As a result of it, genuine people are deprived of getting the roof over their head.

If this vacant land tax is imposed and sincerely implemented, the black money market in the real estate sector will be also systematically curbed. “Because of this decision, no one will own more than one or two houses. Currently, everyone wants to park their money in real estate. There are many buildings which have been vacant for several years now, and these buildings are now known as ghost buildings. Such things should be stopped.

According to latest report from “Liases Force” a real estate research firm 2 lakhs housing units are lying vacant in Mumbai metropolitan region alone that is more 73 % of the completed projects.

The government’s move aimed to curb developers practice of sitting on excessive land banks for indefinite period, unfair practices of builders of withholding completed flats / projects for speculative gains ultimately leads to real estate rate increase & as well as for multiple flat owners invested for such speculative gains.

The government has prepared draft but rules & regulations, percentage of tax to be levied are not yet finalized.

Though this is a well-come move for people & many real estate research firms too has appreciated it but certainly for developers & builders it is not & people form constriction industry has started criticizing it by labeling it as anti development ( ? ) (obviously).

However there are some serious issues involved in its implementation such are number of permissions required for construction industry & time lapses in obtaining those permissions, time laps in cases related with land litigations, flats purchased by the NRI’s or especially Indians currently staying abroad but willing /planned to return India in near future.

This move is likely to open approximately 3 to 4 lakh empty flats in Pune itself, which may trigger real estate price correction ( expected for long time) & will not only give an opportunity to the people to fulfill their dream of making their home but also it correct or moderate the rent market which is currently too high especially in western Maharashtra.
Pune’s real estate unsold inventory reaches to 2.8 lakhs units

Though first time in India any state government has decided to implement this tax but for optimum utilization of land & resources, speedy completion of projects it is globally well accepted tax policy. Many Latin American countries too (except Peru with no such tax) have this provision at differential higher rates. Country like Singapore has a provision of 25 % tax on vacant land & if the purchased land not used in specific period, land cost gets wiped out in the next 5 years.